The BRICS economic alliance is headed for what may be the most important event in its history. The annual BRICS summit has become a vital meeting for the group. In addition, this year there seems to be the possibility of groundbreaking developments. In particular, the BRICS are expected to make 3 important announcements during the 2024 annual summit.
In 2023, the group underwent its first expansion since 2001. A watershed moment for the bloc, with the United Arab Emirates (UAE), Egypt, Ethiopia and Iran joining the bloc.
Perhaps the most significant move for the alliance as it approaches the 2024 summit is the arrival of ‘BRICS Pay’. In the last two years, demonetisation has been a pivotal point for its infrastructure. With talk of a native currency fizzling out, its own payment system is set to change the international game.
Based on blockchain, it should be one of the biggest geopolitical and economic developments in recent years. In addition, it will act as a response to the Western-dominated SWIFT payment system. Specifically, in allowing nations to conduct increased bilateral trade in local currencies.
Since 2022 and the US weaponization of the dollar, the BRICS have accelerated all these efforts. Earlier this year, Russia relaxed its legal restrictions on cryptocurrencies, leading many to believe that the new payment system is based on blockchain.
And of course the timing is not accidental. In the last six months, Russian trade with the BRICS group increased by 14.7%. Notably, China supports the ruble in 80% of all its transactions with Russia.
‘BRICS Pay’ is expected to be the main event of the event. Not only is it the natural next step in reducing dependence on the dollar, but it opens up a world of possibilities for intra-group trade. Also note that earlier this year, Russian President Vladimir Putin traveled to North Korea, Iran and India with an agenda of facilitating new trade. These agreements should be taken seriously.
A new expansion?
The BRICS 2024 summit knows that the world is waiting for an announcement about the group’s expansion. In 2023, it issued more than six invitations to join the alliance. Subsequently, there has undoubtedly been increased interest from other states seeking to join.
This year, more than 30 nations have confirmed their interest in joining BRICS. Interestingly, this number will likely increase as the year progresses. In a surprising development, NATO member Turkey has announced its interest in joining.
Countries such as Venezuela, Nigeria, Malaysia and Thailand are all seeking entry. Every nation mentioned has a reason to want to join. Plus, they all bring some kind of special value to what the group is building. However, nothing is certain as the issue of integration is an important geopolitical issue and the members are examining it in depth.
